Burnham criticised for limited business rates review
A Treasury review of business rates for pubs and hotels has drawn fire for being too narrow, with industry groups urging a full overhaul.
Andy Burnham has been accused of taking a piecemeal approach after the Treasury announced a review of property valuations that determine business rates for pubs and hotels. The review, led by Jerry Schurder, is intended to make valuations "fairer" for these sectors, but critics say it stops short of the wholesale reform promised in Labour’s election manifesto.
Scope of the review
The government’s move follows last month’s 20 per cent cut in rates for pubs, social clubs and live‑music venues. However, the review will not touch on rates paid by retailers or restaurants, sectors that also face steep bills. Rural pubs, for example, have complained that the current system inflates their rates by counting features such as waterfront views.
Industry reaction
The British Chambers of Commerce slammed the limited remit, saying a broader review is "urgently needed".
"While it is welcome for the pubs and hotels we represent, this review of valuations should be wider, and cover every sector," said Jonny Haseldine, head of business environment policy at the BCC.The British Retail Consortium welcomed Schurder’s appointment but warned that retailers, who pay 20 per cent of total business rates despite representing only five per cent of the economy, must not be overlooked. Real Rates Reform Alliance chair Ros Morgan called the focus "disappointing" and urged a levy on online sales to fund a 37 per cent cut for bricks‑and‑mortar businesses.
What’s next?
Labour’s 2024 manifesto pledges to replace the business rates system with a fairer model that raises the same revenue. With the review now underway, pressure is mounting for the government to broaden its scope before the next election. Financial Secretary James Murray reiterated the commitment to a fairer system, but industry leaders say the current review is merely a first step.
Stakeholders will be watching closely to see whether the Treasury expands the review beyond pubs and hotels, or whether further political pressure forces a comprehensive overhaul of the rates framework.
For more details on the government's initiative, see the Treasury's review of business rates for pubs and hotels.
